HRAS Adjustment Determination 2007-08

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HRAS Adjustment Determination 2007-08 Powered By Docstoc
					                                               2009 No.27


 The Housing Revenue Account Subsidy (Wales)
     Determination 2007-2008 (Amendment)
              Determination 2009


The Welsh Ministers as respects all local housing authorities in Wales, in
exercise of the powers conferred on the National Assembly for Wales by
sections 80 and 87 of the Local Government and Housing Act 1989, and of all
other powers enabling them in that behalf and which are now vested in
them(1), after consulting such representatives of local government and
relevant professional bodies as appear to them to be appropriate hereby
make the following Determination:-


            Made 16th July 2009

            Coming into force 17th July 2009


Citation and Commencement

1.1 This Determination may be cited as The Housing Revenue Account
    Subsidy (Wales) Determination 2007-2008 (Amendment) Determination
    2009.

1.2 This Determination shall have effect in respect of the financial year
    beginning 1 April 2007 and applies to the following local authorities:

          Monmouthshire County Council;
          Torfaen County Borough Council;
          Rhondda Cynon Taff County Borough Council; and
          any Councils that transferred during 2006/07.

1.3 “Transfer” means the transfer of land, houses or other property in the
    Council’s HRA to a Registered Social Landlord.




(1)
      These powers were transferred to the National Assembly of Wales by the National Assembly for
       Wales (Transfer of Functions Order) 1999 and are now vested in the Welsh Ministers by virtue of
       section 162 of and Schedule 11 to the Government of Wales Act 2006.
Variation of the Housing             Revenue      Account     Subsidy       (Wales)
Determination 2007- 08

2.1 Where reference is made to “31 March 2008” within The Housing
    Revenue Account Subsidy (Wales) Determination 2007-08 the date
    should be replaced with “the actual date of transfer”.

2.2 Paragraph 2.2 (i) shall have added the following:
    “except where the Council has undertaken stock transfer.”

2.3 Paragraph 2.2 (ii) shall have added after “to any dwelling in the HRA for
    part only of the year” the following “including properties included in a
    stock transfer undertaken by the Council in the year.”.

2.4 Paragraph 5.1.2 shall be replaced with the following:

     Calculation of Charges for Capital

     5.1.2   Charges for capital shall be calculated in accordance with the
             following formula -

             E + (F x H) + I    x   T
                                    365

             where:

             E        is the admissible minimum revenue provision for 2007-
                      2008 (as defined in paragraph 5.4.5 below);

             F        is the Final subsidy capital financing requirement,
                      (calculated in accordance with paragraph 5.2 below),
                      except that where that is a negative amount “F” shall be
                      nil;

             H        is the consolidated rate of interest (calculated in
                      accordance with paragraph 5.5.1 below);

             I        is a proportion of the authority's debt management
                      expenses for 2007-2008 calculated in accordance with
                      proper practices to reflect the proportion which the HRA
                      should bear;

             T        is the number of whole days in 2007-2008 that the
                      dwellings remained in the Council’s ownership
2.5 Paragraph 5.2 shall be replaced with the following:

     Final Subsidy Capital Financing Requirement

        5.2 The Final subsidy capital financing requirement means the
            aggregate of the opening subsidy capital financing requirement
            for 2007-2008 (calculated in accordance with paragraph 5.3
            below) and the adjustments required in paragraphs 5.2.1 and
            5.2.2 below.

        5.2.1Items to be aggregated with the opening subsidy capital
             financing requirement for 2007-2008

             (i) the capital expenditure financed by supported borrowing by
             means of borrowing or credit arrangements that is incurred in
             2007-2008 on either new or existing land, dwellings or other
             property in the HRA (as defined in paragraph 5.4.1 below); and

             (ii) the sum of the capital costs of any leasehold interests
             acquired in the year in dwellings or other property in the HRA;
             and

             (iii) the certified value of land, dwellings or other property
             which commences or recommences to be accounted for in the
             HRA in 2007-2008 for a reason other than acquisition (whether
             by appropriation for the purposes of part II of the1985 Act or
             otherwise)

        5.2.2 Items to be deducted from the aggregate of the opening
              subsidy capital financing requirement for 2007-2008 and the
              items in paragraph 5.2.1

             (i)(a) save where paragraph 5.2.2 (i)(b) below applies,
              in respect of HRA capital receipts which become payable in
             2007-2008 for land, dwellings, or other property in the HRA,
             excluding any amount from the Welsh Assembly Government or
             other body in respect of the 2007/08 transfer of stock, the
             aggregate of the amounts as reduced by defraying those costs
             falling within the description contained in Regulation 18(6) of the
             2003 Regulations, calculated on the reduced amount as follows:

              -     75% of receipts (other than those referred to below) in
                    respect of the disposal of dwellings;

              -     50% of receipts (other than those referred to below) in
                    respect of the disposal of other property (other than
                    dwellings) in the HRA; and

              -     0% of a disposal falling within the description contained
                    in regulation 10(9) of the 2003 Regulations
                      (i)(b) where the number of dwellings in the HRA at the date of
                      transfer has increased or decreased by 10% or more from the
                      number in the HRA at the beginning of 1 April 2007, excluding
                      the dwellings which formed part of the stock transfer, the
                      aggregate of the share of the HRA capital receipts which
                      become payable in 2007-2008 for dwellings, or other property in
                      the HRA, calculated in accordance with the following formula:

                                                     YxZ
                                                     365
                         where -
                              (2)
                        Y        is the part of the capital receipt for land, dwellings or
                               other property in the HRA which becomes payable in 2007-
                               2008, and shall be:

                                    -    75% of receipts (other than those referred to below)
                                         in respect of the disposal of dwellings;

                                    -    50% of receipts (other than those referred to below)
                                         in respect of the disposal of other property (other
                                         than dwellings) in the HRA; and

                                    -    0% of a disposal falling within the description
                                         contained in regulation 10(9) of the Regulations

                        Z is the number of whole days from the date the capital
                           receipt becomes payable to the date of transfer;

                        (ii) the admissible minimum revenue provision for 2007-2008
                        (as defined in paragraph 5.4.5 below);

                        (iii) in respect of the value of dwellings or other property which
                        ceases to be accounted for in the HRA in 2007-2008 for a
                        reason other than disposal (whether by appropriation for the
                        purposes of Part II of the 1985 Act or otherwise):

                          -         75% of the certified value of dwellings; and

                        -    50% of the certified value of other property (other than
                        dwellings).

               5.2.3 The result of the above calculation is the Final Subsidy Capital
                      Finance Requirement (Final Subsidy CFR).


(2)
      Transferring authorities will have received on transfer a Direction issued under Section 87 of the Local
      Government and Housing Act 1989 that directs that the proportion of capital receipt received by the
      transfer Local Authority in respect of improvement works associated with the transfer of dwellings
      shall be Nil when calculating “Y” in paragraph 5.2.2 (i)(b).
2.6 For any Council that transferred its stock during 2006/07 paragraph 5.3
    shall be replaced with the following:

        Opening Subsidy Capital Financing Requirement

        5.3 For the purposes of paragraph 5, the Opening Subsidy Capital
            Financing Requirement shall be “Nil”.

2.7 Paragraph 5.4.5 (ii) shall have added after “for that year” the following
    “except where the Council has undertaken stock transfer.”

2.8 The definition of “Q” within paragraph 5.5 shall be replaced with the
    following:

        Q is the average 3 month sterling London Interbank Bid Rate for
        2007-2008 calculated by aggregating the rates published on the last
        day of each month throughout 2007-2008 and dividing the total by 12.




   Signed:         ______________________________________

   Deputy Minister for Housing
   Under the authority of the Minister for Environment, Sustainability and
   Housing, one of the Welsh Ministers.

   Date:           _______________

				
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